Nzdusd rises as markets await employment data and fed rate decision

NZDUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.35%	20.7 Pips
Week to-date	0.3%	17.7 Pips
May	0.46%	27.4 Pips

Upcoming key events (London Time)

Tue 11:45 PM NZD Employment Change
Wed 07:00 PM USD Fed Interest Rate Decision (Federal Funds Rate)

What happened lately

In New Zealand, the focus is on the upcoming Employment Change data, scheduled to be released at 11:45 PM. This high-impact economic indicator is crucial as it provides insights into the country’s labor market conditions, reflecting the number of employed individuals during the reported month. A rise in employment typically indicates economic growth, which can prompt the Reserve Bank of New Zealand to consider adjustments in monetary policy. A solid employment report may bolster business confidence, consumer spending, and overall economic activity.

In the United States, market participants are eagerly awaiting the Federal Reserve’s Interest Rate Decision, due on Wednesday at 7:00 PM. The Federal Funds Rate is a significant tool used by the Fed to influence economic activity, affecting everything from borrowing costs to consumer interest rates. If the Federal Reserve decides to increase rates, it can indicate an attempt to combat inflation and cool down an overheating economy. Conversely, holding or reducing rates may signal efforts to stimulate economic growth. This decision is a critical factor for investors and analysts, as it provides insights into the Fed’s assessment of the current economic landscape and their monetary policy direction.

With NZDUSD rising slightly by 0.35% to 0.59640, the pair remains in a consolidation phase as traders and investors anticipate significant economic events. The imminent release of employment data from New Zealand and the Fed’s interest rate decision are expected to influence the currency pair’s movements. Should New Zealand’s employment figures come in stronger than expected, it could lead to an appreciation of the NZD, pushed higher by positive sentiment and potential for tighter monetary policy. On the other hand, a hawkish stance by the Federal Reserve, indicating higher-than-anticipated interest rates, could strengthen the USD, exerting downward pressure on NZDUSD. Ultimately, the interplay of these economic factors will dictate the near-term movements and trends of NZDUSD in the financial markets.

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What can we expect from NZDUSD today?

NZDUSD on Monday rose 0.35% to 0.59640. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for NZDUSD looks mixed as the pair is likely to consolidate above 0.59378 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.59955 or trades above daily pivot 0.59666. Break above could target R1 at 0.59929. While to the downside, we are looking at 0.59378 (S1) and daily low of 0.59404 as support levels. NZDUSD need to break on either side to indicate a short-term bias. A break above 0.59955 may suggest continuation after recent positive movement.

For the week to-date, take note that NZDUSD is mixed as compared to the prior week.

Key levels to watch out:

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